>who don't know the difference between an algorithmic stablecoin and a centralized one.
What difference does it make? Neither work if the stablecoin becomes undercollateralized. Undercollateralized stable coins will crumble if there is a bank run. Tomorrow you will be able to exchange 1 USDC for $1. This will cause a feedback loop where USDC will continually be bought and then burned. The missing or illiquid 3.3 billion will become a larger and larger percentage of USDC's total market cap. Will they really take out a 3.3 billion loan just to pay out people in a dead stable coin? At that point it may make sense to just call it a failure and give up.